Not All That It Seems
This paper studies the impacts of the COVID-19 pandemic on Indonesia’s labor market by exploiting the exogeneous timing of the pandemic in a seasonal difference-in-differences framework. The analysis uses multiple rounds of Indonesia’s National Labor Force Survey from 2016 to 2020 to establish a pre-pandemic employment trend and then attribute any excess difference in employment outcomes from this trend as the estimated effect of the pandemic on individual employment outcomes. The results suggest that the pandemic has had mixed effects on the Indonesian labor market. While the pandemic has narrowed the gender gaps in employment participation through the “added worker effect” among women, it has also lowered the overall employment quality among both gender groups. The findings show that the increase in female employment is primarily driven by women in rural areas without high school education, entering informal work, agricultural employment, or unpaid family work. For men, the pandemic has had adverse impacts on their employment across the board in all sub-populations. Consistent with findings from other studies, steeper employment declines are observed in urban areas, particularly among males. Among those employed, both women and men work fewer hours and earn lower wages.
| Main Authors: | , , |
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| Format: | Working Paper biblioteca |
| Language: | English English |
| Published: |
Washington, DC: World Bank
2023-03
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| Subjects: | FEMALE EMPLOYMENT, COVID-19 PANDEMIC, INFORMAL SECTOR, COVID LABOR MARKET IMPACT, EMPLOYMENT AND GENDER, URBAN UNEMPLOYMENT, FORMAL JOB LOSS, |
| Online Access: | http://documents.worldbank.org/curated/en/099847503012372120/IDU0af18d6630517704e7a09b9b003262aacb4b2 https://openknowledge.worldbank.org/handle/10986/39499 |
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| Summary: | This paper studies the impacts of the
COVID-19 pandemic on Indonesia’s labor market by exploiting
the exogeneous timing of the pandemic in a seasonal
difference-in-differences framework. The analysis uses
multiple rounds of Indonesia’s National Labor Force Survey
from 2016 to 2020 to establish a pre-pandemic employment
trend and then attribute any excess difference in employment
outcomes from this trend as the estimated effect of the
pandemic on individual employment outcomes. The results
suggest that the pandemic has had mixed effects on the
Indonesian labor market. While the pandemic has narrowed the
gender gaps in employment participation through the “added
worker effect” among women, it has also lowered the overall
employment quality among both gender groups. The findings
show that the increase in female employment is primarily
driven by women in rural areas without high school
education, entering informal work, agricultural employment,
or unpaid family work. For men, the pandemic has had adverse
impacts on their employment across the board in all
sub-populations. Consistent with findings from other
studies, steeper employment declines are observed in urban
areas, particularly among males. Among those employed, both
women and men work fewer hours and earn lower wages. |
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